Real estate commission in Ontario: 4–5% + HST, and who pays
Real estate commission in Ontario is usually 4–5% of the sale price plus 13% HST, split between the listing and buyer's brokerages, and it's always negotiable. On a $500,000 home that's $22,600 to $28,250. Or skip the listing side: a flat fee MLS® listing costs from $69.99 a month, and you show and negotiate yourself.
Updated October 5, 2026
How much is real estate commission in Ontario?
Most full-service listings in Ontario carry a total commission of 4–5% of the sale price, plus 13% HST, usually split about evenly between the listing brokerage and the buyer's brokerage. One Ontario brokerage team's 2026 guide puts it at "between 4% and 5% of the sale price in the Greater Toronto Area" (Ferreira, September 2026).
Five per cent is the traditional figure: as Global News reported in 2024 a University of Alberta real estate professor said that in Ontario "it is generally a five per cent flat fee". Nothing fixes it, though; it's whatever you agree in your listing agreement. The table shows the total at 4% and 5%, and what's left if you pay only a buyer agent's 2.5% on a flat fee listing.
| Sale price | 4% + HST | 5% + HST | Flat fee listing: 2.5% to the buyer's agent + HST |
|---|---|---|---|
| $400,000 | $18,080 | $22,600 | $11,300 + your plan |
| $500,000 | $22,600 | $28,250 | $14,125 + your plan |
| $750,000 | $33,900 | $42,375 | $21,188 + your plan |
| $1,000,000 | $45,200 | $56,500 | $28,250 + your plan |
Who pays real estate commission in Ontario, and how
The seller pays the commission, out of the sale. You never write a cheque for it before closing: the buyer's deposit and your sale proceeds cover it, and your lawyer handles the payment. With a traditional, full-service listing the money moves in four steps, from the accepted offer to the day your lawyer pays you what's left.
- Your home sells for an agreed price, and the buyer pays a deposit, usually into the listing brokerage's trust account.
- On closing, the deposit counts toward the commission. The brokerage credits you the deposit, up to the commission and HST.
- Your own lawyer pays any balance of the commission from the sale proceeds, before paying you. On the standard OREA offer form you sign this direction: "I hereby irrevocably instruct my lawyer to pay directly to the brokerage(s) with whom I have agreed to pay commission, the unpaid balance of the commission together with applicable Harmonized Sales Tax" (LAWPRO practicePRO, quoting the OREA agreement, 2025).
- The listing brokerage pays the buyer's brokerage its agreed share. Your lawyer then pays off your mortgage and sends you what's left.
How commission works with a flat fee (mere posting) listing
With a flat fee listing, also called a mere posting, there's no listing commission at all. You pay the brokerage a fixed price to put your home on the MLS® System and realtor.ca, and you show it and negotiate yourself. The only commission left is the one you chose to offer the buyer's agent.
Offers are made out to you and come to you directly, so our brokerage never holds the buyer's deposit. The deposit goes into the buyer's brokerage's trust account or to a lawyer. The buyer agent's commission you offered is settled on closing through your lawyer, from the deposit or your sale proceeds, and only if that agent's buyer buys. If the buyer has no agent, there's none to pay.
On a $750,000 home, that's the difference between about $42,375 at 5% plus HST and about $21,188 for a 2.5% buyer agent's commission plus HST, plus the plan: from $69.99 a month, or $99.99 for 2 months, with HST added in Ontario.
What the law says: commission is negotiable
No law, regulator or board sets a commission rate in Ontario. The regulator, RECO, says so in the RECO Information Guide every brokerage must give you: "You and the brokerage decide the amount you will pay for services. The amount is not fixed or approved by RECO, any government authority, or any real estate association or real estate board."
The same guide says you "can agree to pay a fixed dollar amount, a percentage of the sale price, or a combination of both", and that a seller's agreement must state the amount you pay your brokerage and the amount offered to the buyer's brokerage. An agreement can't set the fee as the difference between the listing price and the selling price.
These rules sit under Ontario's Trust in Real Estate Services Act, 2002 (TRESA), which RECO enforces. The Canadian Real Estate Association agrees: "Consumers have always been able to negotiate commissions with their agent either as sellers or buyers" (CREA to Global News, 2024). So 5% is a starting point, never a rule.
HST on real estate commission in Ontario
Yes, commission is taxed. A brokerage's commission is a service, so in Ontario it carries 13% HST, added on top of the percentage you agree. A 5% commission costs 5.65% of the price once HST is in; 4% becomes 4.52%. On a $500,000 sale, 5% is $25,000, the HST is $3,250, and you pay $28,250.
The home itself is a different matter. The Canada Revenue Agency says "sales of used owner-occupied homes are usually exempt" from GST/HST (CRA, GST/HST info sheet GI-004), so a typical resale carries tax on the commission but not on the price. New and substantially renovated homes follow other rules; ask your lawyer if that's you.
A flat fee listing is taxed the same way: Ontario plans have 13% HST added, and so does the buyer agent's commission you offer.
How to negotiate real estate commission
Agents expect the question, and most have room. The price of the home, how quickly it's likely to sell and what you want done all move the number: a higher-priced home or a fast market usually earns a lower percentage. Get it in writing in the listing agreement before you sign, including what you offer the buyer's brokerage.
- Interview two or three agents and ask each for their rate and exactly what it includes (photos, staging, open houses, paid ads).
- Split the two halves. Negotiate the listing side and the buyer agent's side separately; each is its own number in the agreement.
- Point to your home's strengths: move-in ready, a busy area, a price that will draw offers quickly.
- Trade services for price: fewer marketing extras, a shorter listing, or handling some showings yourself.
- Compare a flat fee. If you'll show and negotiate yourself, a flat fee listing takes the listing side out entirely.
The buyer agent's commission in Ontario
As the seller, you set the buyer agent's commission in your listing agreement, as a percentage or a flat amount, and it's paid on closing from the deposit or your proceeds. It's an offer to whichever brokerage brings the buyer, paid only if that agent's buyer buys, and agents see it on the MLS® System before booking.
- What's usual: about half of the total, often 2–2.5% (one Ontario brokerage team's 2026 guide describes a 2.5% / 2.5% split).
- Offering less is allowed, but agents compare it before showing a home, so a low offer can mean fewer showings. On our listings you always offer the buyer's agent a commission.
- When the seller offers nothing, RECO's guide warns buyers they may owe their own brokerage's fee, which "could affect the amount you are able to offer for a property" (RECO Information Guide).
- In a full-service sale the listing brokerage pays the buyer's brokerage its share; with a flat fee listing it's settled through your lawyer.
Discount, 1% and cash back brokerages
Between a full 4–5% and a flat fee there are other models. Some Ontario brokerages advertise a 1% or reduced listing fee with fewer services; some buyer brokerages give buyers cash back from their side of the commission. Each can be the right fit, but compare the total, not the headline rate.
Ask three questions of any discounted offer: what the listing side costs, what you're expected to offer the buyer's agent (a reduced rate often covers only the listing side, so the total can end up close to a standard commission), and which services are dropped, such as photos, open houses or negotiating. RECO's guide is clear that you shouldn't "assume a particular service will be provided if it's not included in the agreement".
A flat fee listing is the furthest point on that scale: a fixed price for the MLS® listing, no listing commission, and you do the showing and negotiating. See what a flat fee MLS® listing includes.
Private sale networks charge a set fee instead of a percentage; PropertyGuys fees start at $499 before realtor.ca, by its corporate page.
Closing costs beyond the commission
Commission is usually the biggest cost of selling, but it isn't the only one. Whether you sell with a full-service agent, a flat fee listing or privately, budget for these as well; your lawyer will set most of them out in the statement of adjustments before closing.
- Your real estate lawyer: fees and disbursements for reviewing the offer and closing the sale.
- Paying off your mortgage: a discharge fee, and a prepayment penalty if you break a closed mortgage early.
- Adjustments: property tax, utilities or condo fees you've prepaid are credited to you; any you owe are charged.
- Getting ready to sell: repairs, cleaning, a photographer, staging or a pre-listing inspection, if you choose.
- Capital gains, only if it wasn't your principal residence every year: then commissions and legal fees are "outlays and expenses" that reduce the gain (CRA guide T4037).
Full service, flat fee or private sale?
If the cost of commission worries you, there are three ways to sell, and the right one depends on how much of the work you want to do yourself. All three need a lawyer at the end; only the first two put your home on the MLS® System, where buyer agents search.
To sell by owner in Ontario and keep the listing commission, see your four ways to do it and the rules that still apply, or read how to sell your house privately in Ontario step by step.
- Full-service agent: usually 4–5% + 13% HST in total; the agent prices, markets, shows and negotiates.
- Flat fee MLS® listing: from $69.99 a month, plus the buyer agent's commission you choose. On the MLS® System and realtor.ca; you show and negotiate.
- Private sale (sign, online ads): no listing cost, but most buyers search with an agent on the MLS® System, so you reach fewer of them.
Questions
What percentage do most realtors charge in Ontario?
Most full-service listings in Ontario carry 4–5% of the sale price in total, plus 13% HST, split between the listing and buyer's brokerages; 5% is the traditional figure. Nothing sets it: RECO says the amount "is not fixed or approved" by any regulator or board, so it's negotiable.
Is real estate commission fixed in Ontario?
No. RECO's guide says the amount you pay is decided by you and the brokerage and isn't fixed or approved by RECO, the government or any real estate board. You can agree a percentage, a fixed dollar amount or both, and it's written into your listing agreement.
How much does a realtor make on a $500,000 sale in Ontario?
At 5%, the total commission is $25,000 plus $3,250 HST. That's split between two brokerages, usually about $12,500 each, and each brokerage then shares its half with its agent under their own arrangement, so the agent's take-home is less. At 4%, the total is $20,000 plus HST.
Is 2% a good commission in Ontario?
It depends on what it covers. A 2% total is well under the usual 4–5%, so check which services are dropped and what's left for the buyer's agent. Often 2% is only the listing side, with 2–2.5% more offered to the buyer's agent, bringing the total to about 4–4.5% plus HST.
What is the lowest commission a realtor will take?
There's no minimum; it's whatever you agree. Some brokerages offer 1% or a fixed fee on the listing side. A flat fee MLS® listing goes further: no listing commission, from $69.99 a month, and the only commission is the one you choose to offer a buyer's agent, paid only if their buyer buys.
How is commission split between agents in Ontario?
Usually about evenly between the listing brokerage and the buyer's brokerage, such as 2.5% and 2.5%, but each half is a separate figure in your listing agreement and both are negotiable. Each brokerage then pays its own agent their share.
Do I pay the buyer agent directly in Ontario?
No. You set the buyer agent's commission in your listing agreement, and it's paid on closing from the deposit or your sale proceeds, not out of your pocket beforehand. In a full-service sale the listing brokerage pays it; with a flat fee listing it's settled through your lawyer.
Is HST charged on real estate commission in Ontario?
Yes. The 13% HST is added to the commission, so 5% becomes 5.65% of the price and 4% becomes 4.52%. The sale price of a used owner-occupied home is usually exempt from GST/HST, so the tax falls on the commission, not the home.
Can I claim realtor fees on my taxes in Canada?
Not for a home that was your principal residence every year you owned it, because the gain is usually tax-free. For a rental, a cottage or another property, the CRA treats commissions and legal fees as outlays and expenses that reduce your capital gain. Ask an accountant about your case.
What's cheaper: a real estate agent or a flat fee MLS® listing in Ontario?
A flat fee listing, by a wide margin. On a $500,000 home a 5% commission with HST is $28,250. A flat fee listing has no listing commission: you pay the plan (from $69.99 a month) plus the buyer agent's commission you offer, about $14,125 at 2.5% with HST. You show and negotiate yourself.
What's included
- Marketing your home on the MLS® System and realtor.ca
- Negotiating with buyers and their agents
- Handling showings and offers
- Closing coordination with the buyer's agent and your lawyer
- Professional staging advice (varies by agent)
Flat fee MLS® prices
| Plan | Price | 🎁 With code FREEUPGRADE |
|---|---|---|
| Monthly Subscription | $69.99 / month | — |
| 2-month Listing | $99.99 | You get the 3-month Listing, free |
| 3-month Listing | $119.99 | You get the 6-month Listing, free |
| 6-month Listing | $149.99 | You get the MAX Exposure Listing, free |
| MAX Exposure Listing | $239.99 | — |
Plus 13% HST. The monthly plan can be cancelled any time.
What real estate commission costs on your Ontario home
Enter your expected sale price to see what a typical full-service commission would cost, including 13% HST, next to a flat fee MLS® listing where you handle showings and offers yourself. For more ways to model it, use the real estate commission calculator.
Ontario figures with 13% HST. Both sides leave out the buyer agent's commission, which you offer whichever way you list.
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